News Article CPI Czech Republic lawsuit Orco report
by Property Forum | Report

CPI Property Group published an update regarding the lawsuit filed in April 2019 in the United States District Court for the Southern District of New York. The lawsuit concerned a group of Kingstown companies, Investhold LTD and Verali Limited (who filed a claim against CPIPG and Mr. Radovan Vitek and other parties alleging violations of the Racketeer Influenced and Corrupt Organizations Act in the United States. On 4 September 2020, the SDNY Court dismissed the claims against all defendants and directed the clerk of court to close the case.

“CPIPG was always confident that the lawsuit had no merit,” said Martin Nemecek, CEO. “Justice was served, and the Group is excited to conclude this chapter in our history.”

In dismissing the lawsuit, the SDNY Court ruled that Luxembourg is an adequate forum for the resolution of the Kingstown Plaintiffs’ claim and referenced the substantial similarities to a lawsuit filed in Luxembourg by Kingstown in 2015, from which CPIPG was dismissed in June 2019. The SDNY Court also indicated that the lawsuit “bears indicia of forum shopping,” and that “the salient difference between the two suits is the potential for treble damages under the RICO statute” which “is not a legitimate reason for choosing this particular venue.”

The Kingstown Plaintiffs may determine to appeal the SDNY Court ruling, but CPIPG believes the basis for appeal is exceptionally weak and the CPIPG Defendants would once again mount a vigorous defence.